Copyright 2008 The New York Sun Fri, 04 Jul 2008 12:47:46 -0400 http://blogs.law.harvard.edu/tech/rss Business :: Stories from The New York Sun http://www.nysun.com/business istoll@nysun.com (Ira Stoll) webmaster@nysun.com en-us JULIE SATOW http://www.nysun.com/business/pace-quickens-in-russias-suit-against-the-bank/81225/ Thu, 3 Jul 2008 00:00:00 EST MOSCOW — Russia's Federal Customs Service and the Bank of New York Mellon are ramping up the pace of their attacks in preparation for today's expected resumption of hearings in a $22.5 billion racketeering lawsuit. The bank's case could be weakened by the disclosure that one of its star witnesses, Richard Thornburgh, a former Pennsylvania governor and U.S. attorney general, is mentioned in a document published by his law firm that says the bank took responsibility "for crimes involving fraud... DAN DORFMAN http://www.nysun.com/business/city-faces-more-anguish-at-the-pump/81228/ Thu, 3 Jul 2008 00:00:00 EST Every driver is experiencing pain at the gas pump, but the anguish is more severe in New York City, where prices are among the highest in the nation. The latest figures from the American Automobile Association show that prices for city residents are running nearly 6% to 10% higher than the national average on grades of gasoline ranging from regular unleaded to diesel fuel. Across the city, for example, prices now are: o$4.38 a gallon for regular unleaded, versus $4.08 nationally. o$4.69 for... TIM PARADIS http://www.nysun.com/business/stocks-trade-mixed-following-employment-report/81245/ Thu, 3 Jul 2008 09:54:20 EST Wall Street capped a shortened trading week with a mixed finish today after some uneven economic data: news of a contraction in the nation's services sector and a tame reading on employment. The Dow Jones industrial average showed a sizable advance, while the broader indexes ended mixed. The stock market closed early ahead of the Fourth of July holiday. The Institute for Supply Management said its index of service sector activity fell to 48.2 from 51.7 in May. That news touched off more... LARRY NEUMEISTER http://www.nysun.com/business/judge-orders-prison-for-former-refco-ceo/81249/ Thu, 3 Jul 2008 13:36:54 EST A judge has sentenced the former chief executive of Refco Inc. to 16 years in prison for a financial cover-up that brought down one of the world's largest commodities brokerages. Phillip Bennett, a British citizen living at Gladstone, N.J., had previously pleaded guilty to conspiracy to commit securities fraud and other charges. Refco went public in August 2005. It filed for bankruptcy just weeks later — after disclosing that a $430 million debt owed to Refco by a firm controlled by Bennett had... JEANNINE AVERSA http://www.nysun.com/business/employers-cut-jobs-for-sixth-straight-month/81243/ Thu, 3 Jul 2008 08:55:51 EST WASHINGTON — Employers cut payrolls by 62,000 in June, the sixth straight month of nationwide job losses, underscoring the economy's fragile state. The unemployment rate held steady at 5.5%. The latest snapshot of business conditions, released by the Labor Department today, showed continued caution on the part of employers who are chafing under zooming energy prices and are uncertain about how long the economy will be stuck in a sluggish mode, reflecting fallout from housing, credit, and... GREG BENSINGER and JEFF GREEN http://www.nysun.com/business/merrill-suggests-gm-bankruptcy-shares-drop/81229/ Thu, 3 Jul 2008 00:00:00 EST General Motors Corp. shares fell to their lowest level since 1954 after a Merrill Lynch & Co. analyst said the automaker may need to raise as much as $15 billion and faced the possibility of bankruptcy. The "dramatic drop-off" in the American sales market probably will continue through 2009, forcing GM to find additional funding, analyst John Murphy, who lowered the shares to "underperform" from "buy," said in a report. "Bankruptcy is not impossible if the market continues to deteriorate." GM... Bloomberg News http://www.nysun.com/business/amr-corp-accrues-127b-in-costs/81230/ Thu, 3 Jul 2008 00:00:00 EST American Airlines parent AMR Corp. will record costs of $1.27 billion to reduce the value of parked aircraft and pay severance to workers who lose their jobs as it cuts flights in response to record fuel costs. AMR expects to eliminate about 8% of its total workforce, or 6,840 jobs, when it reduces capacity in the fourth quarter, the company told workers at American and American Eagle in a message yesterday. The job cuts would be the most among those announced this year by American carriers... TIM PARADIS http://www.nysun.com/business/light-gains-as-markets-begin-trading-day/81150/ Wed, 2 Jul 2008 10:04:00 EST Wall Street resumed its sell-off today after oil hit a new record and a bearish analyst report renewed concerns that General Motors Corp. could run out of cash. The stock market's pullback, which accelerated in the final hours of the week's last full trading day, left the Dow Jones industrial average officially in bear market territory, with the blue chips having fallen more than 20% from their October highs. Oil surged to new records above $144 a barrel as the government reported a... CANDACE TAYLOR http://www.nysun.com/business/city-housing-slump-may-hit-in-2009/81127/ Wed, 2 Jul 2008 00:00:00 EST New York City apartments, long immune to the national housing slump, could see their first price declines in a decade, quarterly reports scheduled for release today suggest. If the credit crunch does not improve and Wall Street layoffs continue, experts say plummeting sales activity and rising inventory may lead to falling prices in segments of the market. The Corcoran Group's quarterly report shows a steep 38% drop in sales, to 3,351 properties, in the first quarter of 2008, down from 5,404 in... Associated Press http://www.nysun.com/business/student-loan-guidelines-lessen-interest-rates/81129/ Wed, 2 Jul 2008 00:00:00 EST Changes in the federal student aid program that took effect yesterday will lessen interest rates for some students while increasing the amount they can borrow. Among the biggest changes, the interest rate on new, subsidized Stafford loans to undergraduates drops from 6.8% to 6%. Subsidized Stafford loans are awarded to lower-income students, and the government picks up interest payments while students are still in school.The rates are slated to decline in stages over the next five years, part... CATHERINE BILKEY http://www.nysun.com/business/report-details-troubles-in-chinatown/81130/ Wed, 2 Jul 2008 00:00:00 EST Chinatown's economy has not improved at the same rate as the rest of the New York economy since the terrorist attacks of September 11, 2001, and is floundering under an economic model that stresses price competition rather than diversifying goods, a research report issued yesterday by the Asian American Federation of New York says. "There are a lot of resources that need to be brought to bear to allow the business community to adapt," the census information center manager at the Asian American... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/july-4th-the-holiday-of-american-business/81131/ Wed, 2 Jul 2008 00:00:00 EST What is the most important American holiday for business? Some would argue it is the annual Christmas crescendo or the Mother's Day construction, but the purest form of holiday for American business is the Fourth of July. The holiday marks the anniversary of the Declaration of Independence, a document that trumpets neither nationalism nor conflict. Rather, it is a tribute to the individual and all that an individual pursues, including, specifically, business interests. The natural enemies of... HENRY MEYER http://www.nysun.com/business/new-charges-brought-against-russian-billionaire/81132/ Wed, 2 Jul 2008 00:00:00 EST MOSCOW — Russian prosecutors have filed new charges against Mikhail Khodorkovsky that his lawyer said may add 20 years to the jailed former OAO Yukos Oil Co. billionaire's sentence. Khodorkovsky, who is due to be released in 2011, was charged with laundering more than $28 billion and stealing 48 million barrels of oil, the Investigative Committee of the Prosecutor General's Office said yesterday in a faxed statement. He is currently serving eight years in a Siberian jail for fraud and tax... Associated Press http://www.nysun.com/business/after-salmonella-scare-other-produce-to-be-tested/81133/ Wed, 2 Jul 2008 00:00:00 EST WASHINGTON — Adding to tomato confusion, the government is about to start testing numerous other types of fresh produce in the hunt for the source of the nation's record salmonella outbreak — even as it insists tomatoes remain the leading suspect. Investigators are mum on exactly what other vegetables are getting tracked.Items commonly served with fresh tomatoes is the only hint the food safety chief at the Food and Drug Administration, David Acheson, would give, calling it "irresponsible" to... Bloomberg News http://www.nysun.com/business/starbucks-to-close-600-stores-may-cut-12000-jobs/81134/ Wed, 2 Jul 2008 00:00:00 EST Starbucks Corp. will close 600 coffee shops in America and eliminate as many as 12,000 jobs, the most in its history, as the company's chief executive officer, Howard Schultz, slows the chain's expansion after it doubled in size in four years. Starbucks gained as much as 7.2% in late Nasdaq trading after saying the reductions amount to 7% of its workforce worldwide. The cuts include full- and part-time employees and will come over the next nine months, the Seattle-based company said yesterday... JOE BEL BRUNO http://www.nysun.com/business/stocks-fall-sharply-on-first-day-of-q3/81052/ Tue, 1 Jul 2008 10:07:37 EST Wall Street began the third quarter with an erratic session and modest gain today after a mix of news made it clear the country is still deep in economic problems but may have some positive trends — including some better than expected sales for General Motors Corp. Prices rose early in the session, then turned sharply lower for much of the day and then recovered in late afternoon. The uneven performance wasn't surprising — some bargain hunting was to be expected after a dismal first half, and... JULIE SATOW http://www.nysun.com/business/delay-of-moscow-hearings-may-be-bad-sign-for-bank/80977/ Tue, 1 Jul 2008 00:00:00 EST MOSCOW — Bad news was on the docket for the Bank of New York Mellon in Moscow early yesterday, as hearings in a racketeering case against the bank were postponed until Thursday, a move that may impede the ability of the bank to put on the stand a number of witnesses who flew to Moscow to help in its defense. RELATED: Alan Dershowitz's Testimony (pdf) | Richard Thornburgh's Testimony (pdf) | The New York Sun's Special Coverage. Among the legal luminaries who sat in the crowded, stuffy courtroom... JULIE SATOW http://www.nysun.com/business/dershowitz-argues-for-foreign-use-of-rico/81005/ Tue, 1 Jul 2008 00:00:00 EST In testimony that was to be submitted to a Moscow court yesterday, a Harvard Law School professor, Alan Dershowitz, states: "In sum, a RICO civil lawsuit brought by a foreign nation in a foreign tribunal premised on the type of gross misconduct alleged here, and in particular, this vast money laundering scheme, is consistent with and advances Congress's goals in enacting a broad civil remedy and in ensuring its application in the global arena." The testimony was withdrawn by the plaintiffs... LIZ PEEK http://www.nysun.com/business/whether-mccain-or-obama-tax-hike-looms/81006/ Tue, 1 Jul 2008 00:00:00 EST At least one person in Washington remembers that the Bush tax cuts are due to expire, setting the stage for a huge tax increase over the next decade. It's a good thing, since a collective amnesia seems to have settled over the Beltway. Candidates propose raising taxes here, there, and everywhere, conveniently forgetting that an increase is on the way, no matter who is elected. The newly installed head of the Securities Industry and Financial Markets Association, Timothy Ryan Jr., is trying to... JOHN THOMPSON http://www.nysun.com/business/creative-capitalism-takes-on-philanthropy/81007/ Tue, 1 Jul 2008 00:00:00 EST At the World Economic Forum in January, a co-founder of Microsoft, Bill Gates, outlined "creative capitalism," a new business practice that aligns profit making with social justice. Now authors Michael Kinsley and Conor Clarke are inviting some of the world's leading economic lights to debate the viability of philanthropic business at "Creative Capitalism: A Conversation." The Web log posts and essays will be collected into a book to be published this fall. On the site, a professor of economics... Bloomberg News http://www.nysun.com/business/lehman-drops-to-eight-year-low-on-sale-speculation/81008/ Tue, 1 Jul 2008 00:00:00 EST Lehman Brothers Holdings Inc. fell to an eight-year low on speculation the fourth-biggest American securities firm may be sold for less than its market price, traders said. Lehman lost $2.44, or 11%, to $19.81 in New York, the lowest since May 2000. The company's value has tumbled 70% from a record $45.5 billion on February 2, 2007, ending today at $13.8 billion, according to data compiled by Bloomberg. "We're hearing that there may be a possibility of Lehman being taken over," the senior... Bloomberg News http://www.nysun.com/business/wal-mart-revamps-logo-to-help-transform-image/81051/ Tue, 1 Jul 2008 00:00:00 EST Wal-Mart Stores Inc., the world's largest retailer, will revamp its logo in the coming months for the first time in 16 years as part of an effort to transform its image amid criticism over employment policies. The new logo will be introduced in the fall, according to the company's Web site yesterday. The "Walmart" is in blue, without a star between the "Wal" and "Mart" and is followed by a yellow, six-point asterisk that resembles the sun. It will replace the darker blue logo. Wal-Mart, which... TIM PARADIS http://www.nysun.com/business/stocks-start-mixed-as-oil-tops-143/80959/ Mon, 30 Jun 2008 09:50:45 EST Wall Street ended an arduous first half quietly today, closing mixed as investors again based their trades on what has become the dominant force in the market: the price of oil. The major indexes closed out the first six months of 2008 with double digit declines, and are perilously close to the levels of a bear market. Stocks pulled back in the early going as oil reached yet another record, this time, above $143 a barrel. The market then gathered some strength as crude lost momentum and allowed... RANDOLPH E. SCHMID http://www.nysun.com/business/postal-service-announces-streamlining-new-hires/80966/ Mon, 30 Jun 2008 17:19:04 EST WASHINGTON — The Postal Service today announced a reorganization that officials expect to streamline agency operations. The change will create two "focal points" for the agency, one to deal with shipping and mailing services and the other to work with customers and others outside the post office. Robert F. Bernstock has been hired as president of the newly created Shipping and Mailing Services Division, the Postmaster General, John Potter, said. Mr. Bernstock has served as president and chief... THE NEW YORK SUN http://www.nysun.com/business/bank-of-new-york-mellon-at-court-in-russia-a-new/80967/ Mon, 30 Jun 2008 17:34:54 EST "New York's oldest bank could be on the hook for $22.5 billion if the Russian government gets its way. Russia is suing the Bank of New York Mellon under the Racketeer Influenced and Corrupt Organizations Act for money laundering in Moscow in the 1990s. The case, while potentially a financial disaster for the bank, is also a means for Russia to prosecute a bank that is widely viewed there as a symbol of the chaos and corruption that pervaded the country under President Yeltsin." -Julie Satow... JULIE SATOW http://www.nysun.com/business/legal-nightmare-feared-in-russia/80947/ Mon, 30 Jun 2008 00:00:00 EST The final stages of a $22.5 billion battle pitting the Bank of New York Mellon against the Russian Federation will begin today in a Russian court. The decision in the money laundering suit, which may be handed down as early as this week, could set a precedent for the global application of the Racketeer Influenced and Corrupt Organizations Act, on which the suit is based. The case is troubling some lawyers, who say the Russians are applying the RICO statute piecemeal, and should they win it... DAN DORFMAN http://www.nysun.com/business/new-threat-the-obama-market/80913/ Mon, 30 Jun 2008 00:00:00 EST As if investors didn't have enough to worry about, a new land mine is lurking: "the Obama market." That's what I heard over the weekend from a veteran investment adviser, Charles Allmon. "Political ramifications represent a significant added market risk that should not be ignored," he says. Initial polling suggests that Senator Obama will be the next president, a view Mr. Allmon shares. An Obama presidency is certain to mean a big tax increase, he says. He also points to the likelihood that the... V.L. HENDRICKSON http://www.nysun.com/business/this-week-in-new-york-business/80914/ Mon, 30 Jun 2008 00:00:00 EST Today H&R Block is scheduled to release its fourth-quarter earnings. The Federal Reserve Bank of New York hosts a three-day "Global Economic Forum." The New York Public Library offers a seminar on interpreting financial statements beginning at 11:15 a.m. at the Science, Industry, and Business Library at 188 Madison Ave. Free. Contact: 212-592-7000 Tomorrow The Apollo Group is scheduled to release its third-quarter earnings. The Hispanic Professionals Networking Group offers the 2008 Latino... JAMES QUINN http://www.nysun.com/business/barclays-banker-is-optimistic-about-economy/80915/ Mon, 30 Jun 2008 00:00:00 EST Larry Kantor is not like other economists. While his peers have been engaged in a vicious spat as to who can predict the darkest scenario for the American economy, Mr. Kantor has been quietly and self-assuredly forecasting quite the opposite. In spite of oil closing at a new all-time record above $140 on Friday, more than one million Americans facing the loss of their homes, and major American stock markets on the verge of entering a bear market, Mr. Kantor remains one of a small band of... JULIE SATOW http://www.nysun.com/business/bank-of-new-york-fails-to-set-aside-funds-for-loss/80938/ Mon, 30 Jun 2008 00:00:00 EST A financial expert who was hired by the Russians to look into the financial standing of the Bank of New York Mellon, Kenneth Thomas, has launched a letter-writing and telephone campaign to warn regulators that the bank made a mistake is deciding against setting up a special contingency reserve for potential damages related to the case. "Assuming a $22.5 billion judgment, which could reportedly happen as early as June 30, 2008, and assuming just a portion of it is enforced in the more than 90... SEBASTIAN ABBOT http://www.nysun.com/business/untapped-saudi-field-could-hold-key-to-oil-price/80920/ Sun, 29 Jun 2008 22:20:56 EST KHURAIS OIL FIELD, Saudi Arabia — This massive oil field surrounded by the desolate sands of Saudi Arabia's vast eastern desert feels like the middle of nowhere. But what happens over the next year at Khurais, one of Saudi Arabia's last undeveloped giant oil fields, could hold the key to what drivers will pay at the pump for years to come. Under way at Khurais and two other smaller fields nearby is what Saudi Arabia calls the single largest expansion of oil production capacity in history. With... MADLEN READ http://www.nysun.com/business/stocks-open-lower-after-yesterdays-dive/80864/ Fri, 27 Jun 2008 09:30:36 EST Wall Street ended a depressing week with another big loss today, with the Dow Jones industrials falling more than 100 points amid ever-escalating worries about high oil prices and fallout from the credit crisis. The major indexes all all down more than 3% for the week. The Dow has fallen nearly 460 points in the last two days and reached its lowest point since September 2006. Investors again contended today with a seemingly relentless stream of troubling news about the financial sector. Moody's... MELITA MARIE GARZA http://www.nysun.com/business/ibm-mars-to-sequence-cocoa-genome/80802/ Fri, 27 Jun 2008 00:00:00 EST International Business Machines Corp. is working with candy maker Mars Inc. and the American government to study the genetic code of cocoa trees to safeguard the world's chocolate supply. Closely held Mars, the maker of M&M candies and Snickers bars, and the U.S. Agriculture Department will sequence the entire cocoa genome, deciphering the plant's biological map. IBM will analyze the results using Blue Gene, the world's second-fastest supercomputer, the company said yesterday in a statement... JESSICA MINTZ http://www.nysun.com/business/on-gatess-last-day-questions-about-microsofts/80803/ Fri, 27 Jun 2008 00:00:00 EST SEATTLE — It is almost unthinkable that any one human could pick up where Bill Gates leaves off when he ends his full-time tenure Friday as Microsoft's leader. When Microsoft Corp. announced in 2006 that Mr. Gates planned to go part-time as board chairman, so he could spend more time on his global health charity, it named two senior executives to guide the company's overall technical direction. Mr. Gates' recent remarks, however, indicate Microsoft is looking to a much larger group of employees... Bloomberg News http://www.nysun.com/business/bank-of-america-to-cut-7500-jobs/80804/ Fri, 27 Jun 2008 00:00:00 EST Bank of America Corp., the second-largest American bank, will cut about 7,500 jobs after buying Countrywide Financial Corp. The purchase is expected to be completed July 1, Charlotte, N.C.-based Bank of America said yesterday in a statement. The reduction over the next two years — equal to about 2.9% of the combined staff — will occur where jobs overlap "throughout the country," the bank said. Notices will be sent during the third quarter. Countrywide's shareholders Wednesday approved Bank of... MARGARET HO http://www.nysun.com/business/woman-launches-community-bank-among-the-giants/80824/ Fri, 27 Jun 2008 00:00:00 EST Banks across the country may be struggling in a weakening economy, but this hasn't stopped Elena Sisti, a 25-year veteran of Citibank, from striking out on her own: Earlier this month, she launched Savoy Bank in Manhattan, opening an office at 1675 Broadway at 52nd Street. With 90% of its investors based in New York, including the filmmakers Joel and Ethan Coen, the bank is billing itself as "a homegrown community bank that is up to New York standards." Savoy Bank is unusual in opening its... DAN DORFMAN http://www.nysun.com/business/bears-see-darker-outlook-for-bad-news-banks/80825/ Fri, 27 Jun 2008 00:00:00 EST One of the most outspoken bears, global money manager Jim Rogers, who boasts a strong international following, is not only gloomier than ever, but he's warning that the bloodbath in the financial sector is far from over. He re-enforces the growing view that we're now in the reign of the bear. Mr. Rogers, 62, who last August packed his bags, left New York City, and moved with his family to Singapore, told me the other day in an interview: "I wouldn't buy an American stock." Even scarier, he says... ROSS GOLDBERG http://www.nysun.com/business/foreign-reinsurers-may-get-easier-access-to-ny/80826/ Fri, 27 Jun 2008 00:00:00 EST State officials are expected to submit a proposal to Governor Paterson next week that would make New York more open to foreign-based reinsurers, a step that could pave the way for nationwide changes in a $100 billion-plus industry. Mr. Paterson appears willing to approve the plan, expressing disappointment yesterday that the state has "discriminatory" restrictions on companies based outside America. Reinsurers, which provide insurance to other insurance companies, are currently subjected to a... JEANNINE AVERSA http://www.nysun.com/business/first-quarter-economic-growth-beats-expectations/80762/ Thu, 26 Jun 2008 08:49:05 EST WASHINGTON — The economy turned in a better — but still subpar — performance in the first three months of this year, mostly spurred by stronger sales of U.S. products overseas. The 1% annualized increase in gross domestic product, announced by the Commerce Department today, marked a slight improvement from the government's previous estimate of 0.9% growth for the January-to-March quarter. And, it showed the economy logging stronger growth than the feeble 0.6% pace registered in the final three... TIM PARADIS http://www.nysun.com/business/market-sheds-175-points-on-downgrades-oil/80764/ Thu, 26 Jun 2008 10:50:52 EST A barrage of bad news including a new record high for oil sent Wall Street plunging today, hurtling the Dow Jones industrials down nearly 360 points to their lowest level in nearly two years. Oil's surge past $140 a barrel was just one of the day's worrisome developments. Warnings about the key financial, automotive and high-tech industries added up to an increasingly troubled economy. The Dow closed at its low of the day, down 358.41, or 3.03%, to 11,453.42, its lowest finish since Sept. 11... LIZ PEEK http://www.nysun.com/business/food-prices-and-american-waistlines/80708/ Thu, 26 Jun 2008 00:00:00 EST Is there a silver lining behind the increase in American food prices? It has been documented that cheap food encourages more eating. Might not the corollary prove true, that higher food costs will dampen our nation's appetite and slow the growth of America's girth? Food prices rose nearly 5% in 2007, and at an annualized rate of more than 6% during the past three months. That's a big step up from the average increases of 2.5% a year posted for the past 15 years. While for people at the lowest... JOHN THOMPSON http://www.nysun.com/business/anti-semitism-rife-on-yahoo-message-boards/80709/ Thu, 26 Jun 2008 00:00:00 EST While the subprime mortgage crisis roils the market, a profusion of anti-Semitic rhetoric has exploded against companies like Goldman Sachs and Lehman Brothers Holdings on online message boards maintained by Yahoo. "The Jews at Goldman are responsible for high oil prices," one user on a Yahoo message board for Goldman Sachs wrote recently. "Yeah, not one word from the media about how the greedy Jews have brought this whole financial mess on the world. Wonder why that is?" said another poster on... Bloomberg News http://www.nysun.com/business/appeals-court-affirms-conrad-black-conviction/80710/ Thu, 26 Jun 2008 00:00:00 EST The former Hollinger International Inc. chairman serving a 6 1/2-year prison term for fraud and obstruction of justice, Conrad Black, and three ex-deputies had their convictions affirmed by a federal appeals court. The U.S. Court of Appeals in Chicago today rejected arguments by Black's lawyers that he didn't get a fair trial. A jury in Chicago federal court last year found him and three former Hollinger officials guilty of stealing $6.1 million from the company as they engineered the sale of... http://www.nysun.com/business/nine-slash-exxon-valdez-damages-by-80/80664/ Wed, 25 Jun 2008 10:36:17 EST WASHINGTON — The Supreme Court today cut the $2.5 billion punitive damages award in the 1989 Exxon Valdez disaster to $500 million. The court ruled that victims of the worst oil spill in American history may collect punitive damages from Exxon Mobil Corp., but not as much as a federal appeals court determined. Justice Souter wrote for the court that punitive damages may not exceed what the company already paid to compensate victims for economic losses, about $500 million compensation. Exxon... MADLEN READ http://www.nysun.com/business/markets-advance-as-fed-anticipation-builds/80665/ Wed, 25 Jun 2008 10:43:36 EST Wall Street ended an erratic day with a modest gain after the Federal Reserve left interest rates unchanged and issued a mixed assessment of the economy. The Fed pointed to a few positive signs in the economy, including "some firming in household spending." But it also said persistently rising energy prices are likely to limit growth — and not just quicken inflation, which also remains a major concern for the central bank. The central bank said after a two-day meeting it is keeping the... MARTIN CRUTSINGER http://www.nysun.com/business/fed-leaves-interest-rate-unchanged/80670/ Wed, 25 Jun 2008 14:02:05 EST WASHINGTON — The Federal Reserve, navigating treacherous economic waters, decided today to leave a key interest rate unchanged, bringing an end to a string of consecutive rate cuts. RELATED: The Federal Open Market Committee's Statement. The central bank announced that it was keeping the federal funds rate, the interest rate that banks charge each other, at 2%, marking the first time in 10 months that the central bank has failed to reduce interest rates at one of its regular meetings. The Fed... CANDACE TAYLOR http://www.nysun.com/business/us-real-estate-prices-fall-to-2004-levels/80612/ Wed, 25 Jun 2008 00:00:00 EST While the New York City real estate market has managed to avoid price cuts, the nationwide market has dropped to pre-boom 2004 levels, a closely watched housing index shows. "We've erased the last four years of gains," a vice president of index analysis at Standard & Poor's, Maureen Maitland, said. "Home prices are still falling, and the pace of the decline does not seem to be abating." The 20-city S&P/Case-Shiller Home Price Indices for April was 169.85, compared with 167.43 in August 2004... JULIE HIRSCHFELD DAVIS http://www.nysun.com/business/housing-bill-clears-key-senate-test/80613/ Wed, 25 Jun 2008 00:00:00 EST WASHINGTON — A foreclosure rescue bill cleared a key Senate test yesterday by an overwhelming margin, with Democrats and Republicans both eager to claim election-year credit for helping hard-pressed homeowners. The mortgage aid plan would let the Federal Housing Administration back $300 billion in new, cheaper home loans for an estimated 400,000 distressed borrowers who otherwise would be considered too financially risky to qualify for government-insured, fixed-rate loans. An 83-9 vote put the... CATHERINE BILKEY http://www.nysun.com/business/american-airlines-to-offer-free-wireless-for-one/80634/ Wed, 25 Jun 2008 00:00:00 EST Customers on two American Airlines flights will get free in-flight Internet access today as American Airlines tests its new Internet service, provided by Aircell. The service will normally cost as much as $12.95. The airline will be one of the first American carriers to offer Internet access in a market made even more competitive by record-high fuel prices. "We want to observe the performance of the network," a spokesman for American Airlines, September Wade, said. "We've been doing our own... HAROLD FURCHTGOTT-ROTH http://www.nysun.com/business/ending-oil-speculation-will-not-help-consumers/80657/ Wed, 25 Jun 2008 00:00:00 EST Much has been said recently about the evils of market speculation, and in the coming weeks Americans will hear a great deal about why Washington must protect against it. Senator Obama vows to curb oil-market speculation, while Senator McCain, rather defend buyers and sellers from government interference, accuses Mr. Obama of policy imitation. Governor Corzine, who had a successful career on Wall Street and now supports Mr. Obama, recently claimed that "everyone believes there is too much...